People often dub Bitcoin (BTC) as “magic money.” But how magical is this Internet money and why do so many folks buy Bitcoin and other cryptocurrencies? It has more exceptional features compared to traditional fiat currencies, which is why investors, businesses, and various industries are fascinated by it.
How do Bitcoin transactions differ from traditional payments? Here are a few notable things you should know:
1: Bitcoin knows no borders
This dominant cryptocurrency became widely known for being a decentralized asset, which means it doesn’t need a government or central authority to run its systems and operations. Bitcoin works independently through the powerful brain behind it called the blockchain technology. Because it’s decentralized money, Bitcoin can save you from worrying about the tedious and lengthy process of sending payments in any part of the world.
Are you planning to buy a fancy bag or pair of shoes abroad, or maybe transfer money to your relatives or friends locally? With Bitcoin, you can send your payments and transfer funds wherever you want with only a few taps on your digital wallet—just be sure to get a highly secure one that can protect your money against potential cyber-attacks!
2: Bitcoin is more efficient and accessible
Government-issued paper bills often pile up in your wallet and coins can jingle in your purse. Bitcoin can save you from this hassle as it doesn’t have any physical form. Since it works solely through technology, it uses specialized storage called a digital or Bitcoin wallet. These digital wallets are accessible through smartphones or personal computers with Internet access, making them convenient and easy to use.
Also, there’s still a significant percentage of the population that doesn’t have access to banks and other financial services. This can be due to the absence of financial institutions in certain parts of the world or the problem in providing required documents to open a bank account. Bitcoin can eliminate these concerns as you can buy and sell BTC without a bank account.
3: Payments can be completed almost instantaneously
Bitcoin is digital money that uses technology to process transactions. Instead of spending half your day at banks, remittance centers, or other payment service providers, you can complete transactions with just a few clicks on your phone or laptop! This way, you can send or receive money easily and quickly—if not instantaneously.
4: Transaction fees are way cheaper than traditional payments
Often, third-party service providers charge certain fees, which vary depending on the amount, currency, location, and purpose of the transaction. While there are still charges in BTC transactions, they are much cheaper because Bitcoin eliminates intermediaries. So if you’re planning to send money locally or abroad using your BTC, don’t forget to scout for platforms that offer much cheaper to no charges.
5: Bitcoin users don’t need to divulge personal information
Transactions using fiat money often go through banks and other financial institutions. These third parties often require lots of personal details before processing transactions, which can sometimes cause lengthy or delayed payments and remittances.
With Bitcoin, you can send and receive money without providing confidential information, such as name, date of birth, home address, and contact details. All you need is a Bitcoin wallet address where you’ll either send or receive money—no need to worry about submitting documents and other essential identification papers to complete your transaction.
6: Blockchain technology provides transparency
Bitcoin uses a unique technology called blockchain, which works like a record book where all transactions are logged. Interestingly, every user on the network can view ongoing and processed transactions, which allows for more transparency and lowers the chances of fraud. The good thing about the network is that no one will know a BTC’s origin and destination.
While users on the network can see that a BTC is being sent to someone else, there’s no way to get a user’s confidential information; not unless you’ve memorized their digital wallet address, which includes 34 random digits and uppercase and lowercase letters, and are willing to explore the highly complex and secure network of BTC.
7: Cryptocurrency adoption is on the rise
Another notable bit of information about Bitcoin is that its adoption rate around the world is steadily increasing. Since Bitcoin’s birth in 2009, many finance and technology geeks, investors, and crypto enthusiasts have started to explore BTC and other cryptocurrencies’ powerful potentials.
This fascination paves the way for BTC’s adoption rate to grow. Today, major companies in different sectors and industries are utilizing Bitcoin in their operations. You’ll be surprised to learn the things and services you can buy in exchange for your BTC because thousands of merchants worldwide now accept Bitcoin payments!
Experience these benefits today
Our list might look lengthy, but the items here are just a few of the many advantages you can get from using Bitcoin for payments. This is especially true for business owners who have started to accept Bitcoin in exchange for their products and services. It also boosts their digital identity and operations efficiency.
If you’re entirely new to the crypto space and don’t know how to use Bitcoin, don’t worry—it isn’t rocket science. There are many available resources, webinars, and tutorials on the web specifically made for crypto beginners like you! Do your research now, explore Bitcoin’s uses, and experience a whole new level of efficiency in your next financial transaction.